Sunday, September 23 2018 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
Updated: 1 hour 57 min ago
BIS issues consultation on governance arrangements for OTC derivatives data. ESMA issues technical standards on disclosure for securitisations. ECB updates list of supervised entities. UK Treasury issues Statutory Instruments to adapt DGS and CRR after Brexit. US Agencies issue interim rule on the treatment of municipal securities for the purpose of LCR.
New stock exchange begins trading. Results of the performance evaluation of commercial banks. Housing construction projects increased by 3% in July. The easing of global trade tensions paves the way for gains for domestic assets given the temporary reduction in idiosyncratic risks.
After the surprisingly disappointing results in 2Q, the Spanish economy is set to record quarterly growth of 0.7% in 3Q. This, together with the increase of risks and its probability of materialization has meant a downward bias in the 2018 growth forecasts projected by BBVA Research (2.9%).
Although interest in autonomous vehicles has always accompanied the development of the motor car, their deployment has never been so near. First and foremost because the technology is already available. Secondly, because the potential benefits of the establishment of autonomous mobility pool the interests of manufacturers, consumers and the public sector alike.
The service sector contributed 92.3% to Mexico’s GDP growth. The manufacturing industry regained its dynamism in the second half of 2017 (2H17) and has been a constant subject for debate with the renegotiation of NAFTA.
Incoming data consistent with baseline of high growth and inflation in 2018 & 2019. There was no change to FOMC view on the level of accommodation, suggesting that they remain comfortable with further rates increases and additional balance sheet normalization.
In the second quarter the economy grew by 2.5% (adjusted for seasonality and business days), close to the 2.6% posted for the first quarter. Activity was stimulated by the hiring of professional and scientific services (7.6% annually), the public sector (4.8%) and agro (4.7%). Industry figures foreshadow stronger private consumption.
In the first half of the year the economy grew by 2.1% relative to the first half of 2017. Inflation: abating in 2018, the spike in June-July will be only temporary. The easing of global trade tensions paves the way for gains for domestic assets given the temporary reduction in idiosyncratic risks.
July economic indicators are announced today, together with the previously released credit data, suggesting that growth slowdown continued. In particular, FAI, industrial production and retail sales dropped from the previous readings and below the market expectations. More easing measures of monetary policy and more pro-growth fiscal stimulus are expected in coming months.
Latin America has not been spared from the onslaught of the process of monetary normalisation in the developed countries in recent months (especially by the Fed). Worldwide risk aversion is on the increase and capital flows which had earlier cheerfully sought out returns in the emerging economies are being re-routed.
Higher information processing capability provides ever better information about customers, what they need or do not need, whether or not they are willing to pay more, and what their financial situation is.